Germany: Business confidence rises for 3rd consecutive month to reach 30-month high
January 27, 2014
The business confidence indicator published by the Ifo Institute rose in January and reached its highest level since July 2011. The indicator came in at 110.6 points, overshooting both market expectations of 110.0 points and the 109.5 points registered in December. The print represents the third consecutive month of improvement after a slight retreat in October.
The January survey showed a notable improvement in business expectations; the category reached its highest level since February 2011. In addition, firms' view of their current business situation was more favorable compared to the previous month, reaching the highest level since June 2012. Ifo concluded that, "the German economy made a promising start to the New Year."
FocusEconomics Consensus Forecast panelists expect gross fixed investment to expand 3.8% in 2014, which is unchanged from last month's forecast. In 2015, the panel sees investment growth accelerating to 4.0%.
Author: Ricardo Aceves, Senior Economist